Background- My wife and I have been empty nesters last 15 years (married young), and have lived in our present home for 36 years, the mortgage was paid off long ago. We are in our mid 50s. I retired from the fire dept. 9 years ago with a lucrative state pension, and 2 years ago took a part time job with the federal govt. My wife has worked for the local water board for 32 years, and is eligible to retire anytime she wants also with a state pension. We become social security eligible in a few years, and can add those checks to our state pensions. Other words we both have guranteed incomes the rest of our lives. Not rich by any means, but we have a good living. We have been happily married 38 years, and have always had each others back. I couldn't tell ya the last time we even had a minor fuss.
This house buying thing is all new to me. It was much different than 1976. We bought this house new, and signed the papers in the law office in 15 minutes with the builder. I had no where near the rectal exam I'm under right now while going through this process. Something comes in almost everyday from the lender. My wife is stressed out about all this, it wasn't really something she thought about, moving that is. We had to send in W2s, pay stubs, paperwork on our previous mortgage, we had a 25 dollar collection from the eye doctor 4 years ago they quizzed us about. I just forgot, throwing away the mail from them with the junk mail.
"You have a 8 year gap in employment, what were ya doing?"
"I was riding my motorcycles"
"How did you pay your bills"
"With my state pension, and my wife is still workin"
"What did she say about that?"
"I dunno, you'll hafta to ask HER, but I reckon she didn't mind, she's still here" LOL
Never seen anything like this process. I told my wife its just the times we live in post bust wise, and the lady handling the loan is just doing her job.
Our neighborhood has seen a steep decline the last 8 years or so, otherwise we stay here. We love this house, have been here since we were kids, but its time to make a move. We have been approved for 250k mortgage, on new build. That buys a ALOT of house in this part of the country. The home will 2100 sq ft., located in a gated community, our lot backs up to a PGA golf course. Alot of the money is in the lot. The lot is small, so not much grass to cut, or raking to do. Been there done that, and want no more yard work. This new house nicer than we'd ever thought we'd own.
But I digress. Because I have a guranteed check every month, and now a part time fed job (next thing to a guranteed check) not saved much money. I'll be honest, we spend way too much every month, cause I know next month I get a another check. No more, no less, its gonna be there with a defined amount, I don't hafta to worry about the well running dry, and I never thought I'd buy another house, so didn't think about having big savings account.
My question is this- I might have a problem selling this house, and with no money for a downpayment, I'm thinkin I can float a note on some of the equity I have. The realtor put the value of my current home at 120k, and we're on the books asking 110. If I can't sell in the 6 month build phase and the new home is finished, will this option work? Y'all see any negatives goin this route? I have the income to pay the equity line and new mortgage without a problem. I'm looking at 30k to get in the new house, payment would run about 200 a month? I spend that for lunch each month. Taxes and insurance on the old home about 1200 a YEAR, so thats not a issue either. I live in a low tax state.
I've not run this by the lender yet, so I don't know. I'm sure it will have some kind of effect on the new mortgage process and in fact may not be doable. They are gonna break ground on the new house soon, and I told the them, "look here, not sold this house yet," and they said, "don't worry about that." They are a huge company with very deep pockets. Option 2, they buy my house and I can get in the new one. I understand they will low ball it, but that also might the best I can do from a guy off the street also. In 3 weeks I've had 2 guys look at it, so I might get low balled from everyone. My house is in good structual shape but needs updating, but that's another thread.
My house is worth more now than it will be in 5 years, thats a given, but I can do option one indefinately and wait for a better offer. But 2 years of double might cancel out any plus money from holding out for a better offer.
